The double taxation convention between Botswana and the United Kingdom was approved by the African State legislator in January 2006. The agreement was signed in Gaborone on 9 September 2005 and entered into force on 4 September 2006. Following the repeal of the DBA, the Kenyan government issued, on 26 June 2020, a subsequent DBA between Kenya and Mauritius. The DBA is substantially similar to the initial DBA and provides for reduced rates of withholding tax on dividends, interest and royalties. The DCM also deals with other relevant issues, including the exchange of information between the two countries and the procedures of mutual agreement. Double taxation agreement with Belgium, China and Luxembourg. Malawi, Tanzania and are awaiting ratification. Discussions on possible tax treaties are taking place with the following countries: Angola, Kenya, Nigeria, Uganda and Japan. A tax credit is granted unilaterally when a resident of Botswana has been taxed in another country and in cases where a double taxation agreement (DBA) has been concluded. A tax credit is also granted when income from a source has been the subject of a WHT in Botswana.
The amount of the exemption is limited to the reduction of tax paid by deduction and which is normally paid on such income in Botswana. In the new agreement, the scope of an establishment has been extended to construction, assembly and/or installation, as well as personnel services. There is no withholding tax when the royalty is paid by a company of income at the foreign source of the Mauritian company. In addition, an insurance company constitutes an EP when it incurs premiums in the other Contracting State or insures the risks it presents by a person other than through an independent agent. However, an MOU is not created when the insurance activity relates to the reinsurance activity. “The amendment to the law provided, inter alia, for the exchange of tax information in response to a request for information from a competent authority of a contractor,” he said. For more information or clarification, please contact: Botswana has ATDs with Barbados, France, India, Mauritius, Namibia, Seychelles, South Africa, Sweden, the United Kingdom and Zimbabwe. . The two States agreed to exchange information relevant to the application of the DBA as well as to the management of national taxes levied in the Contracting States. .